Kroll and StepStone Launch Payment-in-Kind Indicators for Private Credit Benchmarks

The benchmarks draw on more than 28,000 direct lending instruments across more than 18,000 deals and 13,000 borrowers.

Rhea-AI Summary

StepStone Group (STEP) and Kroll launched three payment-in-kind indicators within their private credit benchmarks to track the use of noncash interest.

Payment-in-kind, or PIK, is interest added to debt rather than paid in cash. The indicators measure PIK as a percentage of interest income and the proportion of PIK loans by deal count and outstanding principal. They cover U.S. and European lending across sectors and borrower sizes, with historical data back to 2012.

For loans originated globally during the previous 12 months, PIK represented 2.86% of interest income as of October 10, 2026. That compares with 6.67% across the global cohort of outstanding loans at the end of Q2 2026, a different loan population.

Key Figures

Direct lending instruments covered: more than 28,000 instruments Deals covered: more than 18,000 deals Borrowers covered: 13,000 borrowers +3 more

Direct lending instruments covered

more than 28,000 instruments

Coverage of the new PIK indicators

Deals covered

more than 18,000 deals

Kroll StepStone Private Credit Benchmarks

Borrowers covered

13,000 borrowers

Kroll StepStone Private Credit Benchmarks

Historical data

back to 2012

New PIK indicators

PIK share of interest income

2.86%

Globally originated loans from the previous 12 months, as of October 10, 2026

PIK share of interest income

6.67%

Global cohort of outstanding loans at the end of Q2 2026

Key Terms

payment-in-kind, ebitda, obligor

3 terms

payment-in-kind financial

"payment-in-kind (PIK) indicators"

Payment-in-kind is when a borrower or issuer settles interest, dividends, or other obligations by giving more of the same asset—extra shares, additional bond principal, or goods—instead of paying cash. It matters to investors because it changes who owns what and when cash is actually received: it can preserve a company’s short-term cash but may dilute equity or increase future claims, altering risk and potential returns much like taking goods instead of a paycheck.

ebitda financial

"variance in PIK activity across EBITDA segments"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

View in glossary

obligor financial

"across different sectors and obligor-size segments"

A party that has a legal duty to make payments or perform other obligations under a contract, debt instrument or security; examples include borrowers, issuers of bonds, guarantors (when they are the ones obligated), and lessees required to pay rent. The term identifies who must fulfill the contractual promise but does not describe how solvent or creditworthy that party is; an obligor’s obligation can be primary (first-line responsibility) or secondary (backed by a guarantee or contingent on another event).

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

The added capabilities provide investors with new visibility
 into the use of PIK loans

NEW YORK, Oct. 29, 2026 /PRNewswire/ --  Kroll, the leading independent provider of global financial and risk advisory solutions, and StepStone Group (Nasdaq: STEP), a leading global private markets investment firm, have today launched three new payment-in-kind (PIK) indicators within the Kroll StepStone Private Credit Benchmarks, giving lenders, investors and analysts greater visibility into the use of noncash interest across private credit. The indicators cover more than 28,000 direct lending instruments, 18,000 deals and 13,000 borrowers, with historical data extending back to 2012.

The new measures track loans with an active PIK component across the U.S. and Europe as well as across different sectors and obligor-size segments using three distinct metrics:

1. PIK as a percentage of interest income
2. The proportion of PIK loans based on deal count
3. The proportion of PIK loans based on outstanding principal

The data offers a reliable view on the dynamic role that noncash interest plays in private credit markets, including the variance in PIK activity across EBITDA segments, geographies and sectors. For example, the Benchmarks indicate that on a global basis PIK use is currently moderating rather than accelerating. Across loans originated globally during the previous 12 months, PIK represented 2.86% of interest income as of October 10, 2026, compared with 6.67% across the global cohort of outstanding loans at the end of Q2 2026.

Michael H. Dolan, President of Financial Advisory at Kroll says, "Private credit and private capital markets have demonstrated relatively solid fundamentals, despite a prolonged period of higher borrowing costs and economic uncertainty. PIK is an important part of understanding what is happening beneath headline returns in private credit; the distinction between interest paid in cash and interest added to debt matters when assessing liquidity, leverage, credit quality and ultimately value."

"Operating at the intersection of value, risk and transactions gives Kroll a unique perspective on these dynamics. As private markets continue to grow and become increasingly complex, independent data, analysis and expertise become more important in distinguishing isolated pressure from broader market trends, bringing greater clarity and peace of mind to investors."

"The growth and evolution of private credit have created a more diverse market, making it increasingly valuable to understand how financing structures are changing alongside it," says Marcel Schindler, Partner and Head of Private Debt at StepStone Group. "Greater visibility into PIK activity across markets, sectors and borrower sizes provides another dimension for assessing market dynamics, comparing opportunities and understanding how portfolios are evolving over time."

Kroll StepStone Private Credit Benchmarks

The Kroll StepStone Private Credit Benchmarks, launched in September 2025, provide market participants with data and analytics derived from more than 28,000 direct lending instruments across more than 18,000 deals and 13,000 borrowers. The Benchmarks allow users to analyze private credit across multiple dimensions, including market segment, sector and lien position.

The new indicators are available in the Kroll StepStone Private Credit Benchmarks, with historical data going back to 2012. Find out more or request a demo here. 

About Kroll

As the leading independent provider of financial and risk advisory solutions, Kroll leverages our unique insights, data and technology to help clients stay ahead of complex valuation demands. Kroll's team of more than 6,500 professionals worldwide continues the firm's nearly 100-year history of trusted expertise spanning risk, governance, transactions and valuation. Our advanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, our values define who we are and how we partner with clients and communities. Learn more at kroll.com.

About StepStone Group

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of June 30, 2026, StepStone was responsible for approximately $913 billion of total capital, including $245 billion of assets under management. StepStone's clients include some of the world's largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass- affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

For more information, visit StepStone Group.

View original content to download multimedia:https://www.prnewswire.com/news-releases/kroll-and-stepstone-launch-payment-in-kind-indicators-for-private-credit-benchmarks-302922568.html

SOURCE Kroll